Prepare a flexible budget and analyze variances for a service department.

Item	Budgeted Amount ($)	Actual Amount ($)
Salaries	$500,000	$520,000
Utilities	$50,000	$45,000
Administrative Costs	$100,000	$110,000
Total Revenue	$800,000	$750,000

Requirements:

Prepare a flexible budget for the service department based on actual revenue.

Calculate and analyze the budget variances for salaries, utilities, and administrative costs.

Discuss strategies to control costs and improve budgeting accuracy in the service industry.